My sorting method keeps evolving. I sort my yardage by color and type, such as florals, juvenile, holidays, blenders, batiks, solids, flannels, fleece, etc., all folded the same way using a 6x24 ruler and stacked on shelves so I can see at a glance what I have available. Fat quarters are also sorted the same way folded neatly and stored vertically in small clear bins. If I buy full bolts I keep those standing on the shelf. I also have a great collection of sample pieces, panels and other smaller pieces that I sort by collection and store in plastic stacked drawers. These are wonderful for scrappy quilts and smaller projects. Then I have my real scraps that are just tossed in a small tub. Stabilizers, fusibles, batting, etc. are kept on the bolt or folded flat on a shelf. All of this is kept in a walk-in closet that is well-lit and off-limits to pets. Once I get started on a project I pull what I need, cut it and pack it into a large zip-lock bag so everything stays together. My sewing room is a bit small but keeping it organized really helps me be more productive and focused.